What do project-best platinum group metal grades at Southwest mean for Terra Metals (ASX: TM1)?

Sonal Goyal

10 November 2026 06:18 PM AEDT

What do project-best platinum group metal grades at Southwest mean for Terra Metals (ASX: TM1)?

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Highlights

Terra Metals reported its highest platinum group metal grades at Southwest on 10 November 2026.
Hole SWDD133 intersected 67 metres grading 2.07 grams per tonne (g/t) 3E from 332 metres.
The intersection included 8.85 metres at 11.85 g/t 3E and 1.07 metres at 72.71 g/t 3E.
Terra held AUD 57.88 million in cash at 30 September 2026, with a maiden Southwest Mineral Resource Estimate targeted for the March 2027 quarter.

Terra Metals Limited (ASX:TM1) is an Australian mineral exploration company advancing the wholly owned Dante Project in Western Australia's West Musgrave region. Its activities focus on the Southwest nickel-copper-platinum group metal discovery and the project's titanium-vanadium-bearing Basal Reefs. Terra Metals Limited (ASX:TM1) shares closed at AUD 0.165 on 10 November 2026. The latest Southwest drilling results provide further evidence of elevated precious metal grades ahead of the company's planned maiden resource estimate.

Southwest Drilling Delivers Highest Reported PGM Grades

On 10 November 2026, Terra Metals Limited (ASX:TM1) announced new diamond drilling results from the Southwest discovery.

Hole SWDD133 returned 67 metres grading 2.07 g/t 3E from 332 metres, where 3E represents the combined platinum, palladium and gold content.

The broader intersection included 8.85 metres grading 11.85 g/t 3E and a narrower 1.07-metre interval grading 72.71 g/t 3E.

These were the highest platinum group metal grades reported at Southwest to that date.

The results follow earlier 2026 intersections, including 14 metres at 3.13 g/t 3E and 80 metres at 1.30 g/t 3E.

However, the reported intervals are downhole measurements, with true widths yet to be established.

Further drilling is required to determine the continuity and distribution of higher-grade mineralisation.

Dante Project Resources and Exploration Programme

Terra's Dante Project contains two principal exploration areas: the Southwest magmatic sulphide system and the Basal Reefs.

The Basal Reefs have an existing Mineral Resource of approximately 148 million tonnes grading 14.8% titanium dioxide, 0.54% vanadium pentoxide and 0.33 g/t 3PGE.

Southwest remains a separate discovery without a declared Mineral Resource.

During November 2026, four drilling rigs were operating at Southwest as Terra continued investigating the mineralised system.

The company reported more than 35,000 metres of drill samples awaiting assay results.

These results will contribute to geological interpretation and resource modelling ahead of the planned maiden estimate.

Maiden Resource and Metallurgical Milestones

Terra Metals Limited (ASX:TM1) is targeting the March 2027 quarter for completion of its maiden Southwest Mineral Resource Estimate.

Metallurgical testwork is expected during the December 2026 quarter to assess mineral recovery characteristics.

The company is also targeting a Southwest scoping study around mid-2027.

These studies will help establish preliminary processing assumptions, potential development Options and the technical characteristics of the mineralisation.

The discovery remains at the exploration stage, and no Southwest Ore Reserve or commercial production plan has been established.

Financial Position and Exploration Expenditure

Terra Metals Limited (ASX:TM1) reported cash and cash equivalents of AUD 57.88 million at 30 September 2026, compared with AUD 75.11 million three months earlier.

Its September Quarterly Report indicated estimated funding availability of approximately 3.4 quarters.

For FY2026, Terra recorded a net loss after tax of AUD 27.95 million, including exploration expenditure of AUD 23.84 million.

Net Assets stood at approximately AUD 76.36 million at 30 June 2026.

Continued drilling and technical studies will require substantial expenditure, making future funding requirements an important consideration.

Tenure and Geological Risks

The Southwest discovery is located within exploration licence E69/3401.

In November 2026, Terra disclosed Royalty and caveat matters affecting the licence, including a 1% net smelter royalty and a disputed claim.

The company stated that its title and exploration activities remained unaffected, although the caveat could restrict certain future dealings.

Separately, high-grade drilling intervals do not establish an economically recoverable deposit without resource estimation, metallurgical assessment and development studies.

Key Insights

Terra Metals Limited (ASX:TM1) has reported its highest platinum group metal grades at Southwest, adding geological information to an expanding exploration dataset.

The forthcoming assays and maiden resource estimate will help establish the scale and grade distribution of the discovery.

Metallurgical results, tenure considerations and exploration expenditure remain important factors as technical evaluation progresses.

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